Lim Hwee Hua
Singapore
“Mr Chairman, Sir, I believe the Minister for Finance has actually addressed that quite adequately in the Budget Statement. I will encourage the Member to read the Hansard. As I recall, he did say that our projections for revenue have been made for the next five years and we do not target a particular source of revenue.”
“Mr Speaker, Sir, I would encourage the Member to file a question for MCYS, if she would like to discuss safeguards further. What I would comment here is that at the outset when we conceived the whole Integrated Resorts idea, there were many business risks: whether it is country risk or the timing of the business cycle and so on.”
“Mr Speaker, Sir, the supplementary questions raised by Ms Denise Phua have actually been debated to some detail under the different heads, in terms of the intended strategy – why we are having Integrated Resorts and casinos in the first place. This has been debated quite extensively by the Ministry of Trade and Industry.”
“Madam, I take the Member's point about the need for checks to be done professionally, and indeed this is the case, and that is why the officers would be sufficiently trained to conduct these checks in a professional manner.”
“The proposed amendments are necessary in order to effect the new financing framework, to allow for greater contestability to be injected into the RTS industry, as well as to ensure security and continuity of the RTS operations. Madam, I beg to move. Question proposed. 4.28 pm”
“Because of the complexity of the issues and the need for us to continue consulting other players who have already been operating in that space, as well as consulting the business community in greater detail, the study would take the better part of this year. OUTCOME OF 50PLUS EXPO 6.”
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“Our current approach of setting the maximum speed is preferred to introducing variable speed signs as it allows us to maximise the capacity of the roads while requiring users to vary their speeds according to their own assessment of safety considerations. As regards his suggestion on dedicating one lane for the fast-moving traffic, there is currently no compelling reason to do so. As mentioned earlier, it could reduce our road capacity. Nevertheless, I wish to thank Mr Ang for his suggestion. Sir, on his comments on the speed limits for commercial vehicles, which was also raised by Mr Ong Kian Min, they have asked whether the speed limits of light commercial vehicles, which refer to light goods vehicles and small buses with seating capacity of up to 15 passengers, can be increased. As we heard earlier in this House, the Land Transport Authority and the Traffic Police regularly review vehicle speed limits taking into consideration the advancements in vehicle technology, geometry of the roads, and the prevailing traffic conditions. I am pleased to inform Members that the review of the vehicle speed limits for light commercial vehicles has been completed. The review found that the accident statistics involving such vehicles on expressways were consistently lower compared to cars. It concluded therefore that the speed limit of such vehicles can be increased by a further 10 km per hour, from the current 60 km per hour to 70 km per hour. The increase in the speed limit will not compromise the safety of such vehicles and other road users. In fact, safety will be further enhanced as the speed differential now between light commercial vehicles and the other vehicles is narrowed.”
“As the full effect of the new scheme has yet to be realised, let me assure Members that my Ministry will monitor this issue closely and, if necessary, we will make further refinements to it. Mr Leow may also wish to note that the high deregistration does not mean that all the vehicles are wastefully scrapped. In 2004, only 9% of the deregistered vehicles were scrapped. Of these, 68% were at least eight years old. The bulk are in fact exported because they can attract higher resale values overseas. This has actually become a flourishing trade of late with many used car dealers. In fact, the LTA has facilitated this process by creating what we call Export Processing Zones where the cars can be held before export. The number of these zones has grown from the initial three to 12 today. Let me now take the issue of speed limits raised by Mr Ang Mong Seng. He asked if the practice in the US of applying variable speed limits on their highways in order to optimise the usage of roads could be implemented in Singapore. Indeed, variable speed limit signs are used in cities in the US, UK and Australia. The purpose of such variable speed signs is to reduce the posted speed limits at certain times of the day in order to improve road safety and traffic efficiency. I wish to explain that our current paradigm is to set the maximum allowable speeds which motorists can travel at. When there are time- or incident-specific safety concerns, such as when there is road maintenance taking place or where there has been an accident, motorists are warned to slow down. The other approach is to set a lower limit and then vary it at certain times of the day to allow a higher speed limit when conditions permit.”
“The decision to purchase a car is a complex issue and is not merely driven by our policy on fees and charges. Economic conditions, rising affluence and the availability of new car models all play a significant part as well. At the end of the day, it is a choice exercised by the consumer himself based on what is important to him, including the intrinsic value of driving a new car. Notwithstanding this, we do review our policies regularly to minimise any impact on consumption patterns. One good example is the review of the PARF rebate system in 2002. Let me just explain briefly. In recent years, arising from our efforts to lower the upfront ownership cost of cars by reducing the ARF for new cars, the sale prices of new cars have fallen quite significantly. Coupled with the lower COE prices due to dampened consumer sentiments and the higher PARF provided to cars under the old PARF regime, this has contributed to more early deregistrations. This is because car owners find it more attractive to cash out on the higher COE rebates and PARF to offset the purchase of a new car at lower taxes and COE premiums. Such a trend has an impact on the used car market which is why the ARF reductions have been incremental and measured. In addition, the PARF scheme has been modified since May 2002 to link the rebate amount to a percentage of the ARF paid, rather than a percentage of the OMV. As the new PARF rates decrease proportionately with the age of the car, this should dampen the propensity to deregister relatively new cars, ie, cars less than five years old. We should have a better sense of the impact of this new PARF scheme in 2007 when all cars registered under the old regime would have crossed the 5-year threshold.”
“Any foreseeable problems will be addressed at the outset by mitigating measures to be implemented by the developers. Under the current practice, LTA works with the developer's representative or traffic consultant to determine the scope of, and the issues to be addressed in the assessment. LTA will also furnish relevant information and liaise with the traffic consultant to facilitate their assessment. With this framework in place, the traffic in the vicinity of developments would be hopefully better managed. Sir, even with a comprehensive framework in place, the traffic in the vicinity of a development can sometimes be affected by changes in the environment a few years after it is opened. LTA monitors all traffic situations carefully. Where there are situations of localised congestion detected for any development, LTA will look for ways to improve the traffic conditions. The specific example of the roads around Ngee Ann City and Mandarin Hotel, as mentioned by Mr Ong, is one such challenge. As this involves the Orchard Road tourist area, LTA has been working in consultation with the other agencies to improve the traffic conditions in that area. Details of this study will be announced in due course. Let me now, Sir, move on to Mr Lawrence Leow's question on the scrapping of vehicles. He asked whether economic loss will result from the early scrapping of cars due to the existing PARF structure and COE prices. Early deregistration of cars may give the impression that we are not utilising our resources in the most efficient manner. However, for the individual car owner, he may be indifferent or even welcome it, since the outcome is that, for a similar car model, he may now need to pay less monthly instalment and yet be able to enjoy driving a new car.”
“In assessing the different factors, the Government is also mindful of the aspirations of Singaporeans to own cars and the impact of the vehicle population growth rate on COE prices. At this juncture, I am pleased to announce that the total COE quota for 2005 is 132,581. This is a small decrease of 1.2% from last year's quota. However, the quota for cars is about the same as last year's. LTA will be releasing the detailed breakdown of the 2005 quota later today. Sir, Mr Ong Kian Min has also raised a few traffic-related issues. Let me take them in turn. Firstly, he asked if the left-turn on red scheme would be expanded to other locations. The left-turn on red scheme allows a vehicle to turn left at a particular traffic light junction even when the traffic light is not in its favour. It requires motorists therefore to be extra careful of pedestrians and other vehicles. For this reason, not all junctions are suitable for the implementation of this scheme because of traffic and safety considerations. To-date, LTA has implemented the scheme at some 39 junctions. It has, in fact, received some adverse feedback from pedestrians, who feel threatened by motorists who do not give way to them at these junctions. Therefore, LTA will have to carefully study the traffic conditions before extending the scheme to more locations. Mr Ong also asked whether there could be better road and traffic planning around new developments to avoid traffic congestion. Today, developments that are expected to have a significant traffic impact in their vicinity are required to submit what we call a Traffic Impact Assessment as part of their planning application. The objective of the assessment is to ensure that these developments do not create traffic problems that spill over to the main road.”
“Sir, first, I would like to thank Members for raising the different cuts. Several Members have raised issues relating to our transport and road infrastructure policies. First, let me address Mr Ong Kian Min's point about the vehicle population growth rate. Since the introduction of the Vehicle Quota System in 1990, our vehicle population growth rate has been set at 3% per annum. When the growth rate was subsequently reviewed in 1999, it was decided that the growth rate could be sustained at 3% till 2005, which is this year. LTA is currently reviewing the allowable growth rate from Quota Year 2006 and beyond. It expects to complete the review by the end of this year. When deciding on a sustainable growth rate, we need to consider several factors. These factors include how fast we can expand our road network to support the growing vehicle population. As an indication, the annual growth rate of 3% in the past 14 years was supported by a period of rapid road network expansion. Between 1990 and 2004, the road network grew by 15%. Sir, given that roads already take up 12% of our total land space, we will have to study, firstly, the pace at, and extent to which our road network can continue to be expanded to support the growth in the vehicle population. Secondly, the extent of road charging needed to manage the potentially higher usage levels lest crippling congestion sets in. And, thirdly, if the additional demand for parking spaces can be met in land-scarce Singapore. Given that this is a multi-dimensional issue, it is important for us to study the medium and long-term implications carefully before we decide on the vehicle population growth rate for the coming years.”
“Sir, where it involves granting tax exemption, certainly the conditions would have to be stringent to ensure that the benefit flows back, hence, the 80% rule. But we would certainly evolve the system as we go along and we would bear that suggestion in mind.”
“Sir, the projections are based on a whole host of assumptions which relate to the vehicle population growth, the rate of deregistration, as well as the projection into COE premiums themselves. The net result is as what the Member has just described.”
“VWOs which qualify for IPC status can allow the donors to claim a double tax deduction on the donation. This would help VWOs attract more donations. VWOs which already have both charity and IPC status include the Asian Women's Welfare Association and the Spastics Children's Association of Singapore. For this Budget, the Government has announced a package of additional incentives to promote community involvement and philanthropy. These incentives demonstrate the Government's desire for the people sector to grow, build up strong community spirit and encourage and engage citizenship. Sir, charity must be conveyed with the heart and with willing hands and not delivered impersonally by a faceless bureaucracy. If everything is done by the Government, we would simply be building an entitlement mentality. Singapore's strength must lie in the willingness of the strong, the able and the successful to care for those who need help.”
“Let me explain why. Sir, we deliberately designed our GST as a simple and broad-based tax. It is applied to all goods and services consumed locally, except financial services and the sale and lease of residential properties. This means that other than GST-registered organisations, all individuals and organisations, including VWOs, cannot claim the GST incurred on their local consumption. This keeps the GST system simple and helps to reduce compliance cost for everyone. Rather than complicate the GST system with separate rules for VWOs, a better way will be for Government to provide targeted help for VWOs on the GST expenses. When GST was introduced in 1994, the Government increased its assistance grants to VWOs to include the GST component. This policy remains unchanged to this day. Government grants for VWOs include help to meet GST cost. Such VWOs include the Muhammadiyah Welfare Home, the Movement for the Intellectually Disabled in Singapore (MINDS), the Lions Home and the Dover Park Hospice. Government assistance in development costs, where the assistance could be up to 90% of the building cost, includes the GST component as well, and Government grants for operating cost include the GST component as well. Hence, there is no need for a separate input GST grant as the earlier grant was transitional in nature. 6.00pm The Government appreciates the good work that VWOs do in providing vital community services. In addition to assistance grants, the Government supports VWOs in other ways. For example, VWOs which qualify for charity status are exempted from income tax if they spend at least 80% of their annual receipts on charitable objects in Singapore, within two years. They are also exempted from property tax for those premises used exclusively for charitable purposes.”
“Chin and Members that we will adopt an inclusive rather than an exclusive approach. However, the guiding principle must be sports which promote good health and physical fitness. The consequence could, of course, be an enhancement of the competitive standards. As regards the extent to which Government funding of expenses should be given between the different sporting associations or the VWOs, I would suggest that the Member raise this under the Head for MCYS. To encourage charitable giving among individuals and corporations, the Government will grant double tax deduction not only for outright donations, but also for donations with naming opportunities. Donors who name an IPC, an IPC facility or an IPC event, can thus qualify for double tax deduction. This applies to donations to all IPCs, and not just IPCs which promote sport. It should therefore not skew corporate giving towards sport which Prof. Chin was concerned about. Companies frequently have a well-defined focus for their corporate social responsibility initiatives. What we want to achieve through this change is for more donors to come forward to support sport, the arts, the environment, the needy or any other charitable cause they feel passionate about, and to build lasting relationships with the beneficiaries they have lent their names to. Let me reassure Prof. Chin that while we now encourage naming donations, we will continue to disallow double tax deduction for outright advertising such as banners. Next, let me thank Dr Ahmad Magad and Ms Olsen for their suggestions on what more the Government can do to help VWOs especially with the cashflows. Although I understand the Members' concerns, I am afraid that the answer is still "no". I do not think that giving VWOs a GST refund or relief is the best way to go.”
“Our intention is to nurture and groom the people sector to play an even bigger role in our society and, certainly, not to stifle its growth with onerous rules. We also believe that IPCs would and should themselves be responsive to the needs of their various stakeholders and adopt practices that best serve their own individual needs. Sir, as mentioned in the Budget Statement, to support the growth of the people sector, the Government will explicitly recognise as charitable purposes several initiatives which we now group under other purposes beneficial to the community, namely, the advancement of health, the advancement of citizenship or community development, the advancement of the arts, heritage and science, the advancement of environmental protection on improvement, the relief of those in need by reason of age, ill health, disability, financial hardship or other disadvantaged and, finally, the advancement of animal welfare. At the same time, we will also recognise the advancement of sport in so far as the sport advances health, which is itself a charitable purpose. This is because we want to recognise the importance of sports in promoting a healthy lifestyle for all. In 2003, the UK, likewise, recognised sport as a charitable purpose. Community amateur sports clubs in the UK already qualify for charity status. I would like to thank Prof. Chin for his suggestions on how we can draw up the qualifying criteria for the type of sports and sports organisations. We will work out the criteria over the next few months, in consultation with the Ministry of Community Development, Youth and Sports, the Singapore Sports Council, the Singapore National Olympic Council and the sports community. Let me assure Prof.”
“When there is a need, Singaporeans always respond to the call and never hesitate to go out of their way to help. Under the leadership of my parliamentary colleague, Mr Ong Ah Heng, the grassroots and the media, a total of $260,000 was raised for the siblings. Sir, this is but one example of the Singapore community in action. To encourage even greater public support, IPCs need to preserve confidence and assure the public that they subscribe to good governance, accountability and transparency. This means defining some common standards and best practices. But, Sir, to what extent should this be done? I agree with Dr Chong Weng Chiew that we must do this in a sensible way, balancing the benefits of regulation against the cost of compliance. We must adopt a risk-based regulatory approach that targets rules at areas of greatest risk or which gives rise to public concern. We must also recognise that IPCs vary significantly in size and expertise. For large IPCs raising substantial amounts from the public, rules may be needed to ensure accountability. However, the same rules could well be inappropriate for the smaller IPCs. The Council on Governance of IPCs set up by the Ministry of Finance has developed a set of recommendations for suitable standards of governance for IPCs. These are preliminary recommendations. The Council will view them after carefully evaluating the feedback that they have received from the different stakeholders, including IPCs and members of the public. The Government will then consider the Council's final recommendations. Let me assure Dr Chong and Members that we will not adopt a one-size-fits-all approach.”
“Sir, let me thank Members for their comments and questions. Sir, there is a Chinese saying, "yuan qing bu ru jin lin", or simply, that a neighbour close by is better than a relative living far away. As the family size shrinks, the extended family and the community will play a more crucial role in providing companionship, sharing common interests and offering support to Singaporeans in time of need. The people sector will increasingly be a key pillar in building the Singapore community. Institutions of a Public Character (IPCs) are key people sector organisations. They have done much good work, providing a wide range of programmes from helping the needy to promoting the arts. IPCs have mobilised and energised Singaporeans in a constructive way, and enhancing social responsibility towards the larger community. Public support for our IPCs has grown, on average, by about 15% a year in the last four years. In 1999, Singaporeans donated an aggregate amount of $300 million to IPCs and this amount has increased to over $500 million by 2003. Sir, Singaporeans are a generous people. In last Sunday's Lianhe Zaobao, Miss Xie Lixuan, a reporter of Shin Min Daily News, recounted how she was personally moved by an elderly man who handed her $100 to help the Yishun siblings who are suffering from a disease which causes their nervous systems to degenerate. The man was in his 70s and lived far away from the Media Centre but he asked her for the bus number and insisted on handing her the money personally. He arrived more than an hour later in sweat, handed her two crumpled $50 bills and left. The elderly declined to be interviewed, refused to have his photograph taken and did not leave his name behind. This is truly a case of "you xin bu pa yuan".”
“Resolved, That this Parliament, pursuant to section 7 of the Civil List and Pension Act (Chapter 44), resolves that the Schedule to that Act be varied by deleting the figures "$2,126,000", "$2,376,300", "$941,600" and "$11,500" in the second column and substituting them for the figures "$2,373,100", "$2,425,100", "$903,600" and "$27,000" respectively. ADJOURNMENT Resolved, "That Parliament do now adjourn to a date to be fixed. - [Mr Mah Bow Tan]. Adjourned accordingly at Twenty-two Minutes to Six o'clock pm to a date to be fixed. APPENDICES”
“Mr Deputy Speaker, Sir, I beg to move, That this Parliament, pursuant to section 7 of the Civil List and Pension Act (Chapter 44), resolves that the Schedule to that Act be varied by deleting the figures "$2,126,000", "$2,376,300", "$941,600" and "$11,500" in the second column and substituting them for the figures "$2,373,100", "$2,425,100", "$903,600" and "$27,000" respectively. Sir, I propose that an additional provision of $247,100 be supported for the Privy Purse under Class 1 expenditure for FY 2004 in view of the restoration of the cuts in the President's salary and higher projected bonuses. This will increase the Class 1 expenditure for FY 2004 to $2,492,700. I propose an additional provision of $48,800 be supported for salaries of personal staff under Class 2 expenditure for FY 2004. This additional budget is required because of higher than anticipated salary payments. This will increase the Class 2 expenditure for FY 2004 to $2,425,100. Sir, I propose a reduction of $38,000 be supported for Class 3 expenditure for FY 2004 due to savings on maintenance, supplies and utilities. The Class 3 expenditure for FY 2004 will thus be $903,600. I propose an additional provision of $15,500 be supported for Class 4 expenditure for FY 2004. This will increase the Class 4 expenditure for FY 2004 to $27,000 and it is for the purpose of a server. It is therefore necessary to vary the provisions in the schedule to the Civil List and Pension Act (Chapter 44) as indicated in the Motion before the House. Sir, I beg to move. Question put, and agreed to.”
“To streamline this process, clause 4(b) amends the rule-making powers of the LTA to enable the Superintendent to install equipment in public parking places without the need to obtain the approval of the Authority. The remaining amendments proposed in the Bill concern the transitional provisions and consequential amendments to the PPA arising from the amendments I have just outlined. Sir, I beg to move. Question put, and agreed to. Bill accordingly read a Second time and committed to a Committee of the whole House. The House immediately resolved itself into a Committee on the Bill. - [Mrs Lim Hwee Hua]. [Mr Deputy Speaker in the Chair]”
“As the parking authority, it will also need to retain powers to enter these parking places to carry out inspections. However, there is no express provision in the PPA that provides for these powers, as prevailing licensing conditions allow the Authority to do so. As these conditions will cease to apply after the deregulation, clause 5 creates new sections in the PPA to empower the Authority and Superintendent to require private parking place operators to furnish information and to enter private parking places for survey or inspection, for purposes of the performance of the functions and duties under the PPA. Implementation of scripless Vehicle Parking Certificates (VPCs) Currently, the PPA empowers LTA to make rules to regulate the parking of heavy vehicles through the issuance of Vehicle Parking Certificates (VPCs). To increase convenience to users by removing the need to physically apply for approvals and also to provide applicants more options, LTA intends to allow online application and approval of VPCs. Clause 4(a) amends the PPA to facilitate the issuance of VPCs in any form, including electronic form. Facilitation of superintendents of car parks to install equipment in public parking places For the administration of the PPA, an officer each from the HDB and URA are appointed as the Deputy Superintendent of Car Parks. These officers are responsible for managing the public parking places, including the installation of equipment in the public parking places for collecting parking charges. However, currently, only the Authority is empowered to install such equipment, thus making it a legal requirement for the Superintendents to seek LTA's approval.”
“LTA has proposed the deregulation as the majority of the existing licensing conditions for these parking places, such as keeping the place in good and clean condition, and not permitting a vehicle to be parked in any manner that would obstruct free flow of traffic, are non-critical. Moreover, the operators' own vested interest will ensure that the parking places are managed prudently; in other words, industry self-regulation is feasible. Other conditions, such as the need to ensure that the private parking places continue to comply with the geometric and provision requirements and are not altered without the approval of the Authority, are also provided for in the Parking Places (Provision of Parking Places and Parking Spaces) Rules and duplicated in the PPA. Therefore, they can be removed, as these controls are still retained and are already provided for in other existing rules. For the remaining licensing conditions, these can be provided for explicitly in the PPA, which I will address next. Authorisation of LTA staff to require private parking place operators to furnish information and to enter private parking places for survey or inspection Sir, LTA today collects information, such as occupancy rates, parking charges and operation hours of private parking places. Such information is useful for the parking authority when it reviews the parking policies and establishes guidelines for new parking systems. Currently, LTA is also empowered to enter the premises of its licensees to investigate feedback on the inadequacies of the private parking places. With the deregulation of private parking places for non-heavy vehicles, LTA will still require certain information from the operators of private parking places.”
“Mr Deputy Speaker, Sir, I beg to move, "That the Bill be now read a Second time." Sir, this Bill contains a range of amendments, arising from the Land Transport Authority (LTA)'s review of its rules to reduce red tape in the licensing of parking places. The amendments will not only serve to help businesses reduce costs of compliance but also improve the administration of parking places. Sir, this Bill covers the following key areas: Firstly, deregulates private parking places for the parking or housing of non-heavy vehicles; Secondly, empowers LTA to obtain information relating to private parking places and to enter private parking places for survey or inspection; Thirdly, facilitates the issuance of scripless Vehicle Parking Certificates (VPCs); and Finally, enables Superintendents of car parks to install equipment in public parking places. Let me now, Sir, elaborate on these areas and highlight the key provisions in the Bill for the proposed amendments. Deregulation of Private Parking Places Sir, I will explain the rationale for the deregulation of private parking places. The Parking Places Act (or PPA) currently stipulates that all private parking places must be licensed. LTA has reviewed the need for licensing. I am pleased to inform the House that it intends to deregulate the licensing of private parking places for non-heavy vehicles, as proposed in clause 3. Doing away with this licensing requirement will be welcomed by the business community and will help reduce cost by an estimated $1 million annually.”
“Sir, this is so drafted to remove the entire classification so that the only category that remains is actually immovable property. Question put, and agreed to. Bill accordingly read a Second time and committed to a Committee of the whole House. The House immediately resolved itself into a Committee on the Bill. - [Mrs Lim Hwee Hua]. Bill considered in Committee. [Mr Deputy Speaker in the Chair]”
“Sir, the effect of this amendment is really to exclude only the class of property valuations. In other words, with the passage of this Bill, there will be no requirement for licensing, and therefore the categorisation.”
“Repeal of section 8 Section 8 of the Property Tax Act was aimed at allowing an owner of a centrally air-conditioned commercial building to get a refund of property tax for approved expenditures to meet the energy conservation standard known as Overall Thermal Transfer Value (OTTV). However, this fiscal incentive has now become obsolete. The OTTV upgrading exercise ended in December 1981 and since then, all new buildings constructed have met the OTTV standards. Therefore, section 8 should be repealed. Sir, I beg to move. Question put, and agreed to. Bill accordingly read a Second time and committed to a Committee of the whole House. The House immediately resolved itself into a Committee on the Bill. - [Mrs Lim Hwee Hua]. Bill considered in Committee, reported without amendment; read a Third time and passed. ADJOURNMENT Resolved, "That Parliament do now adjourn to Wednesday, 24th November, 2004." - [Mr Mah Bow Tan]. Adjourned accordingly at Half past Four o'clock pm to Wednesday, 24th November 2004.”
“Mr Deputy Speaker, Sir, I beg to move, "That the Bill be now read a Second time." The Bill will amend the Property Tax Act to give legislative effect to the following measures: (a) to facilitate electronic transaction via IRAS's new IT system; (b) to empower the Minister to appoint Deputy Chairmen for the Valuation Review Board; and (c) to repeal section 8 on the incentive to meet energy conservation standard. Sir, I shall now explain the amendments in the Bill. Facilitating electronic transactions via IRAS's new system As mentioned in the previous two Bills, IRAS will be replacing its information system, Inland Revenue Integrated System (IRIS) with a new system, Inland Revenue Interactive Network (IRIN). To enhance customer service, IRIN will enable the provision of e-services to taxpayers via personalised portals like e-notices and e-applications. As with the Income Tax Act amendment, the Property Tax Act amendment will also provide electronic notices with the same legal force as paper documents. However, Sir, not all taxpayers are net-savvy. To provide safeguards for taxpayers in circumstances where not responding to electronic notices can lead to criminal proceedings, the Property Tax Act will also be amended to require IRAS to serve notices "personally" or by "registered post" before a person can be prosecuted for non-compliance. Valuation Review Board Currently, the Minister for Finance is empowered to appoint only one Chairman to preside at the meeting of the Valuation Review Board. To allow the efficient processing of cases, section 26 of the Property Tax Act will be amended to allow the Minister the flexibility to appoint Deputy Chairmen to preside over hearing committees in the authority of the Chairman.”
“Sir, I believe this House does not have to clarify media queries but I would reiterate again that $75 million were collected under estate duty for the last financial year. Question put, and agreed to. Bill accordingly read a Second time and committed to a Committee of the whole House. The House immediately resolved itself into a Committee on the Bill. - [Mrs Lim Hwee Hua]. Bill considered in Committee, reported without amendment; read a Third time and passed. PROPERTY TAX (AMENDMENT) BILL Order for Second Reading read.”
“Sir, I think the Government's responsibility is to ensure that a reasonable level is set, and this is a reasonable level.”
“Sir, I would just want to reiterate that I believe Singapore Casket caters to a large part of the deaths that we have in Singapore,and that these are really fairly reliable numbers which would apply. The rule is not to go overboard in terms of allowing for exemption. It is our belief that $6,000 would be sufficient.”
“Singapore does not have a capital gains tax. Our choice is, therefore, not to abolish estate duty but to decide if there is a more effective alternative duty we should adopt, like inheritance tax. Sir, it is also important to note that the collection from estate duty may not be very significant when compared to other major revenue sources, only because we target it at the very wealthy estates. Only 2.6% of estates paid estate duty. Nevertheless, the sum collected in dollar terms is not insignificant. It was $75 million in the last financial year, no small change when one is balancing the Budget. Sir, I am under no obligation to explain how the media report has come about, and I would leave Dr Wang to his decision as to whether he wants to accept the stories or the arguments that were put forth. On Mr Chiam's question about the funeral expenses, let me just assure him that the $6,000 is not an arbitrary figure as he has implied. His comment is that the $6,000 level is still low. We have actually done a survey based on data from the Singapore Casket. Let me take the House through some of these. A no-frills funeralwould cost between $1,500-$6,000 which would include a plain casket and cremation. An intermediate funeral would cost between $6,000-$7,000, which would include a wake, casket, embalmment and cremation. An expensive funeral, of course, would cost northwards of $7,000, which would be an expensive casket, elaborate rites at wake, embalming and cremation. So, as to whether we should allow the dead or the deceased person to have his last wish, I could only say it is a dead loss. Sir, I believe I have answered all the questions.”
“As regards the escalation of the interest rate penalty, let me just say that this treatment is really not dissimilar from the penalty on the late payment of other taxes like income tax. For example, if income tax is not paid on time, an initial penalty of 5% of the unpaid tax would be added and an additional penalty of 1%would be added for each month of the tax that remains unpaid, up to a maximum of 12%. Computer programmes currently exist to compute the appropriate interest rates. Let me just add that the imposition of interest rates by IRAS is really that of an enforcer, rather than that of a banker and, therefore, it is not so appropriate to compare it with the current bank or deposit interest rates. Next, I would like to clarify that the Commissioner of Estate Duty has full prerogative toreduce the interest rates for both late filing and late payment, if he is satisfied that there are reasonable causes for delay. One of the circumstances would be when the executor has difficulty liquidating the assets, which is also a point raised by Mr Chiam. Finally, let me just go on to Mr Chiam's comment, as well as the point raised by Dr Wang, which is on the principle of it. Although, Sir, this is outside the substance of this Bill, which is premised on the continuation of the estate duty regime, let me just recap the reasons for continuing the imposition of estate duty. There are good reasons to retain estate duty in Singapore as a statement of social equity. A survey of countries shows that it is very common for countries to have some kind of death tax. If it is not estate duty or estate tax, then it takes the form of inheritance tax or gift tax. The few countries which had eliminated death taxes, all have other forms of wealth tax or capital gains.”
“Sir, I wish to thank all four Members -Dr Ahmad Magad, Miss Penny Low, Mr Chiam and Dr Wang -for speaking in support of the amendments, with the exception of perhaps Dr Wang and Mr Chiam. Let me just answer the questions in turn. First, I would like to thank Dr Ahmad Magad for his comments on the need for Singapore to remain competitive, vis-a-vis the different tax regimes. I would like to state that our estate duty regime should not deter foreigners from putting money in Singapore, as our estate duty rates are currently among the lowest and our exemption limits are among the highest in the world. Our estate duty regime is more attractive than countries such as the UK and Hong Kong. In addition, for foreigners whose permanent residences are outside Singapore, all the movable assets are not subject to estate duty. Let me now move on to a few other points that have been raised by Miss Penny Low. She has raised some interesting issues. The first is as regards the choice of the six-month period. This six-month period coincides with the deadline to file. Also, the bulk of the cases are actually cleared well within the six-month period and so it is more than sufficient. As regards the grace period, the grace period before interest starts to accrue is actually 30 days from the issue of the notice of assessment or 6 months from death, whichever is later. So, the provision is made such that the executor or administrator of the estate has at least 6 months to find means to pay the duty owed. Less than 3% of all deaths result in estates large enough to be dutiable,that is really the incidence, so that there should be no problems in meeting these payments. The man-in-the-street is, therefore, unlikely to face any of these problems.”
“Clause 10 amends section 58 so that notices issued under the Act can bear the name of the officer authorised by the Commissioner of Estate Duties under section 4(4). Sir, I beg to move.”
“Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time." New interest rate regime In the Budget Statement this year, it was announced that the estate duty processes would be streamlined. Specifically, this amendment seeks to provide a reasonable amount of flexibility. Currently, interest is charged on unpaid estate duty from the date of death. Clause 5 amends section 36 so that for deaths occurring from 1st January 2005, the first six months from death will be interest-free. This gives administrators and executors six months to file a complete estate duty return before interest is charged. It also provides for a grace period of 30 days after the Notice of Assessment has been issued, after which there will be a penalty for late payment. The changes ensure that those who file and make payment promptly are not unduly penalised. Due to the changes in how interest will be charged, clauses 4, 6 to 9 make consequential amendments to sections 31, 38, and 45 to 47 respectively. Increase in deduction for funeral expenses Sir, the next amendment in clause 3 to section 27 increases the maximum deduction for funeral expenses from the current $1,000 or 5% of the ascertained value of the estate, whichever is smaller, to a flat $6,000. This amendment will take effect for deaths occurring after 1st January 2005. The change takes into account the increase in funeral expenses over the years. Other amendments Sir, I now briefly outline two other amendments to the Act. Clause 2 amends section 14(7) to reflect that the Technopreneur Home Office Scheme has been replaced by the Home Office Scheme under the Urban Redevelopment Authority or the Housing and Development Board.”
“Sir, I beg to move, In page 1, after "therewith", to insert ", and to make a consequentialamendment to the Merchant Shipping (Civil Liability and Compensation for Oil Pollution) Act (Chapter 180 of the 1999 Revised Edition)". The long title is amended to comply with Standing Order No. 72(2), which states that if the Committee wishes to make an amendment not within the title of the Bill, it shall amend the title accordingly. The amendment allows the Bill to make a consequential amendment to the Act stated. Amendment agreed to. Bill reported with amendments; read a Third time and passed. EXEMPTED BUSINESS (Motion) Resolved, That the proceedings on the business set down on the Order Paper for today be exempted at this day's sitting from the provisions of Standing Order No. 2. - [Mr Mah Bow Tan]. BUILDING AND CONSTRUCTION INDUSTRY SECURITY OF PAYMENT BILL Order for Second Reading read. 6.08 pm”
“[Mr Deputy Speaker (Mr S Iswaran) in the Chair] Clauses 1 to 4 inclusive ordered to stand part of the Bill. New Clause - "Consequential amendment to Merchant Shipping (Civil Liability and Compensation for Oil Pollution) Act - Section 11 of the Merchant Shipping (Civil Liability and Compensation for Oil Pollution) Act (Cap. 180) is repealed." - [Mrs Lim Hwee Hua]. Brought up, and read the First time. Clause read a Second time and added to the Bill.”
“With increasing global demand for energy, we are seeing a corresponding increase in oil and gas exploration and production activities. This has led to the growth of the offshore drilling and support facilities industry. Although Singapore does not possess such energy resources, we have, over the years, established ourselves as an offshore and marine hub, with capabilities in the building, repairs, conversions and management of offshore vessels.Singapore shipyards, such as Keppel Fels and Sembawang, are leaders in this sector. While these offshore structures are frequently constructed herein Singapore, they are currently registered in other countries, such as the UK, Norway and Australia. This is because our Registry of Ships does not allow for the registration of mobile oil rigs. Allowing such vessels to be registered under the Singapore Flag will enable Singapore to benefit from the growth in the oil and gas sectors as a one-stop "build, register and operate" centre. This will help attract the ship owners and operators to base their activities in Singapore, and further enhance our efforts to develop maritime ancillary services such as ship financing, marine insurance, maritime legal and arbitration services. Sir, let me conclude by saying that the proposals to accede to LLMC 76, and to allow the registration of mobile oil rigs under the Singapore Registry of Ships, will further strengthen our position as a global hub port and international maritime centre. Sir, I beg to move. Question put, and agreed to. Bill accordingly read a Second time and committed to a Committee of the whole House. The House immediately resolved itself into a Committee on the Bill. - [Mrs Lim Hwee Hua]. Bill considered in Committee.”
“Under the proposed amendments in clauses 3 and 4 of the Bill, this would be replaced with a new Part VIII to give effect to LLMC 76. The benefits of acceding to LLMC 76 are as follows: (a)Firstly, it provides higher liability limits than the 1957 Brussels Convention, which are better able to meet the industry's requirements in today's environment; and (b)Secondly, it protects the interests of shipowners, insurers and claimants by making it very difficult to break the shipowner's right to limit his liability, thereby creating more certainty for all parties concerned. Sir, the accession to LLMC 76 will therefore address the shortcomings of the current Brussels 57 Convention. It will also align our standards with other maritime nations, such as Hong Kong, Japan and most EU states; and enhance Singapore's position as a global hub port and international maritime centre. LLMC 76 will also make it more favourable for parties to use Singapore law in their shipping contracts. This should lead to greater use of the dispute resolution and judicial process in Singapore, and help develop our maritime legal and arbitration services. Accession to LLMC 76 would also entail a consequential amendment to the Merchant Shipping (Civil Liability and Compensation for Oil Pollution) Act. Section 11 of that Act is relevant only because we continue to be party to the 1957 Brussels Convention. It should accordingly be deleted upon accession to LLMC 76. This is set out in the Notice of Amendments in respect of the Bill. Amendment to the definition of "ship" Sir, this Bill also seeks to broaden the definition of "ships" under the Merchant Shipping Act. Clauses 2(a) to 2(c) amend the definition of "ships" to include mobile oil rigs.”
“Mr Deputy Speaker, Sir, I beg to move, "That the Bill be now read a Second time."Objective of Bill Sir, the Merchant Shipping (Amendment) Bill 2004 contains two amendments to the Act. First, it gives effect to Singapore's accession to the 1976 International Convention on Limitation of Liability for Maritime Claims, which is known as LLMC 76. Second, the Bill broadens the definition of "ships", so as to allow the registration of offshore vessels, such as mobile oilrigs under the Singapore Registry of Ships. Rationale for Accession to LLMC 76 Sir, let me now provide the rationale for accession to LLMC 76. The LLMC 76 was adopted by the International Maritime Organisation (or IMO), to address the shortcomings of its precursor, the 1957 International Convention on the Limitation of Liability of Owners of Sea going Ships, otherwise known as Brussels 57. Singapore is currently a party to Brussels 57. Like Brussels 57, LLMC 76 sets out the rules on the limitation of liability for maritime claims. Maritime claims include those for death, injury, loss or damage occurring on board or in connection with the operation of a ship. Although the liability limits under the Brussels 57 have served us well, the industry has given us feedback that these limits are now too low to meet their needs. Owing to the nature of the Convention, claimants are now more inclined to take their cases to Court under Brussels 57, to challenge the shipowner's right to limit his liability. This creates great uncertainty for all parties concerned and almost always delays the payment of compensation. Part VIII of the Merchant Shipping Act presently gives effect to the provisions of Brussels 57.”
“Sir, the bulk of Singapore's shipping business is indeed transshipment and that would remain, as our proportion of trade of domestic origin remainssmall. In terms of our share of the overall market, that would really depend on the trade flows. Suffice it to say that Singapore is well positioned to capture the increasing trade flows around the region, especially within theFar East and European routes. As an anecdotal indication, I wish to inform the House thatPSA will be actually building 15 new berths at its Pasir Panjang Terminal over the next five to seven years to boost its capacity from 20 million TEUs to 31.3 million TEUs to tap the increased flow. DEPLOYMENT OF ARMED POLICE OFFICERS IN PUBLIC PLACES 9. Ms Indranee Rajah asked the Minister for Home Affairs whether the deployment of armed police officers from Special Operations Command in public places is due to an assessment of increased risk of national security.”
“Sir, I wish to clarify that the amount that I am seeking to move in this motion is $250,000 million, which is estimated to be the amount outstanding, based on the projection by the MAS for both the financial services' need as well as for the CPF Board. This is really a prudential limit that has taken into account the respective demand streams. Resolved, "That this Parliament, in accordance with Article 144(1)(a) of the Constitution of the Republic of Singapore and section 11(1) and (1A) of the Government Securities Act (Chapter 121A of the 2002 Revised Edition), resolves that the Minister for Finance be authorised to borrow, by the issue of Government securities in Singapore under that Act, from time to time except that the aggregate amount borrowed (whether before, on or after the date this motion is passed) and outstanding at any one time must not exceed Two Hundred and Fifty Thousand Million Singapore Dollars (S$250,000,000,000). ADJOURNMENT Resolved, "That Parliament do now adjourn to a date to be fixed." ˆ’ [Mr Mah Bow Tan]. Adjourned accordingly at Two Minutes past Seven o'clock pm to a date to be fixed. WRITTEN ANSWERS TO QUESTIONS PERMANENT RESIDENCY 1. Ms Braema Mathiaparanam asked the Minister for Home Affairs (a) what was the total number of applications for permanent residency made in 2002 and 2003 by (i) men and (ii) women; and (b) how many in each case were successful.”
“The remaining 42%, ie, $105,000 million will enable financial institutions, such as banks, finance companies and insurance companies, to meet the requirements for liquid asset, as well as to meet the demand from financial institutions' fund managers and other investors. I propose, therefore, that the quantum of the revolving borrowing limit be set at $250,000 million. Sir, I beg to move. Question proposed.”
“Mr Deputy Speaker, Sir, I beg to move, That this Parliament, in accordance with Article 144(1)(a) of the Constitution of the Republic of Singapore and section 11(1) and (1A) of the Government Securities Act (Chapter 121A of the 2002 Revised Edition), resolves that the Minister for Finance be authorised to borrow, by the issue of Government securities in Singapore under that Act, from time to time except that the aggregate amount borrowed (whether before, on or after the date this motion is passed) and outstanding at any one time must not exceed Two Hundred and Fifty Thousand Million Singapore Dollars (S$250,000,000,000). Sir, on 4th May 1999, Parliament resolved in accordance with section 11(1) of the Government Securities Act (Chapter 121A, 1993 Revised Edition) that the Minister be authorised to borrow by the issue of Government securities in Singapore a sum not exceeding S$220,000,000,000. This limit applies to the growth sum of all Government securities issued, regardless of whether they have been redeemed. On 2nd September 2004, Parliament resolved to change the borrowing limit under the Government Securities Act from a growth limit to a revolving limit which is based on the amount of Government securities outstanding. With this change, the existing growth limit of S$220,000,000,000 is no longer applicable. Sir, as at 31st August 2004, a total of S$144,000,000,000 worth of securities is outstanding. It is estimated that the maximum outstanding securities would reach about S$250,000,000,000 in five years. An estimated 58%, ie, $145,000 million of these outstanding Government securities, would be for the CPF Board.”
“Town councils' funds are neither intended nor adequate for this purpose. Therefore, under the Government's Lift Upgrading Programme, town councils fund only a small portion of the total cost and the bulk of the cost is borne by the Government. Mr Chiam See Tong (Potong Pasir): Sir, I have got two supplementary questions for the Minister of State. What are the reasons for HDB in not allowing lifts to stop at every floor at Lorong 8, Toa Payoh, of the Potong Pasir Constituency? And will HDB Lift Upgrading Programme be implemented at Potong Pasir estate?”
“Sir, certainly the suggestion by the Member will be taken into consideration as well. POTONG PASIR TOWN CENTRE (Lift Upgrading Programme) 8. Mr Chiam See Tong asked the Minister for National Development whether, in the light of the recent National Day Rally speech where the Prime Minister said that Singapore must take good care of its senior citizens, his Ministry will now allow the Potong Pasir Town Council to make lifts stop at every floor in all the blocks of flats that are currently undergoing the town council's Lift Upgrading Programme. The Minister of State for National Development (Mr Cedric Foo Chee Keng) (for the Minister for National Development): Mr Speaker, Sir, all town councils, including the Potong Pasir Town Council, are free to carry out their own Lift Upgrading Programme which may include providing for lift access on every floor. What they cannot do is to finance such major upgrading works solely or substantially from town council funds. Let me explain. Town councils (TCs) are largely funded by service and conservancy charges (S&CC) collected from residents as well as grants from the Government. The Government has to ensure that TCs use these funds prudently for the benefit of the majority of their residents over the long term. This is why TCs are required by the Town Councils Act to lock away 30% to 35% of their funds into a sinking fund, to ensure that they have adequate funds in the long term to do major cyclical works like repainting, re-roofing, replacing lifts and replacing water-supply systems. The remaining 65% to 70% of the funds are used for routine operating expenditure, such as cleaning, repairs and utility charges. Lift upgrading works which will enable lifts to stop at every floor are major structural upgrading. They are very costly.”
“Sir, I beg to move, "That theBill be now read a Second time." The Bill before the House seeks to amend the Government Securities Act to change the borrowing limit from a gross basis to a revolving basis. Currently, the borrowing limit under the Government Securities Act refers to the gross sum of all Government securities issued, regardless of whether they have been redeemed. The intention is to amend the Act to change the borrowing limit from a gross limit to a revolving limit, which will be based on the amount of securities outstanding. This is a more meaningful measure of Government’s outstanding liabilities and is consistent with the borrowing limit for treasury bills in the Local Treasury Bills Act, which is on a revolving limit. The key provision of the Bill is in clause 2, which amends section 11 to provide that the borrowing limit refers to the aggregate amount borrowed and outstanding. Sir, I beg to move. Question put, and agreed to. Bill accordingly read a Second time and committed to a Committee of the whole House. The House immediately resolved itself into a Committee on the Bill. - [Mrs Lim Hwee Hua]. Bill considered in Committee; reported without amendment; read a Third time and passed. STANDING ORDERS COMMITTEE”
“Sir, I do not have the details of the accidents that happened inthe other cities but suffice it to say that our numbers are a lot lower. DEATHS FROM CARDIAC ARREST (Measures to reduce incidence) 5. Dr Lily Neo asked the Minister for Health, in view of the recent survey by the National Heart Centre that shows one to two Singaporeans below 60 die from cardiac arrest every day, what actions is his Ministry taking to reduce this incidence and save lives.”
“Sir, I do not disagree with the Member in terms of the need to incorporate safety measures as far as possible, except to reiterate the point that a balance needs to be struck. Having said that, I would like to confirm that LTA and the operators are currently studying the provision of the half-height railings. In the meantime, SMRT will actually be mobilising as many operations staff as possible to assist in patrolling the more than 70 aboveground station platforms, particularly during the peak periods. Staff will actually be given whistles as well to remind commuters to wait behind the yellow lines. The public messaging system will also continue to be used. But, Sir, all these would not have the same effect as the exercise of personal responsibility, and that remains the key point that I would like to leave with Members.”
“For example, the barriers will need to be designed such that commuters will not sit on them and risk falling onto the tracks. Secondly, there will also have to be some distance away from the edge of the platforms to minimise the potential hazard of straying arms, inadvertently infringing onto the paths of oncoming trains. Thirdly, the space between the edge and the barriers can also become another potential hazard, if unwary passengers become trapped within the small space when the trains start to move, and this can happen to alighting passengers at crowded platforms or to passengers rushing to board a packed train. Sir, finally, allow me to comment on the installation of platform screen doors. The overall lifecycle cost, which is in terms of the capital plus the operating and maintenance costs over 25 years, of retrofitting platform screen doors at all open station platforms would easily cost $200 million, depending on the height of the screen doors. Besides the high capital and maintenance costs which will have an impact on operating cost and, hence fares, there are also some technical constraints in retrofitting the sliding doors onto the existing station platforms. There will be considerable modifications to be done to the train signalling and control system to synchronise the sliding doors with the train doors.”
“So, in many ways, Singapore's pattern is similar to that of the other developed countries. In fact, Sir, I am increasingly worried about the lack of due care that an increasing number of pedestrians exercise when using handphones while walking or, worse still, while crossing roads. There have been many near misses. So do we, therefore, ban the use of handphones while walking, as a preventive measure? This cannot be. The point is this: the importance of personal responsibility cannot be overstated. Going on to the question of what are some of thepossible longer term measures under study by the LTA and the operators: the LTA and the operators are studying the effectiveness of the half-height railings used at some systems in other countries, but with lower capacities, and will evaluate a similar proposal for our system. The key issues under study are really how effective these systems are in enhancing safety at the MRT platforms and the cost implications. Let me just briefly elaborate on the half-height railings. These are physical half-height barriers at the edges of the platforms with openings that are aligned to the positions of the train doors. LTA's preliminary risk assessment shows that the barriers will not bring down the risk of accidents at these platforms substantially. It can, nonetheless, help prevent those who may incidentally or unwittingly stray onto the tracks. A recent LTA study shows that such barriers have been adopted in two driverless automated people mover systems in the US and a monorail with driver in Kuala Lumpur, Malaysia. We note that the riderships of these LRT systems are much lower than our MRT system. There are also many other safety considerations that would have to be addressed with the use of these half-height railings.”
“Sir, it is unfortunate that the incidents have happened. Given that the investigations are ongoing, it would be premature to speculate on the causes of the incidents and on whether additional measures might have prevented them from happening. But in any case, allow me, Sir, to talk a bit about the measures as well as the context of these incidents. First, let me begin by informing the House that LTA has in place an operating performance standard which the operators are obliged to comply with. One of the indicators tracked is the passenger injury rate, and the standards stipulate that the cumulative passenger injury rate, which is for the firstaid cases only, should not exceed 0.4 per million passengers per year. So far, the operators have more than met the standards set. Next, let us see the context in which these incidents have taken place. Since 1991, which is when the system was largely ready, there have been a total of 224 cases of unauthorised track access of which 12 were fatalities due to incidents where a commuter was actually hit by an on-coming train. A significant percentage of these fatalities were pre-meditated. While 12 is not a negligible number, and any death is one too many, the figure has to be viewed in the context of the 4.54 trillion passenger trips made during the system over the same period. Let ussee this in comparison with the road-related incidents. For road traffic accidents, there are, on average, 900 accidents that result in injuries to pedestrians every year compared to four at MRT stations.This is despite the various physical measures that have been put up, such as road curbs, roadside railings, vehicle impact guard rails and bollardsat bus stops. The annual number of road fatalities has been in the range of 200 to 250.”
“This is something that the operators and the vast majority of commuters would want to avoid.”